Constellation Energy Corporation (CEG) vs NRG Energy, Inc. (NRG)

Constellation Energy Corporation and NRG Energy, Inc. are both Utilities Independent Power Producers companies. Constellation Energy Corporation is the larger, with a market value of $84.9B against $16.9B — 5.0× the size. NRG Energy, Inc. trades at the lower P/E: 21.4× against 23.4×. Constellation Energy Corporation grew revenue faster over the last twelve months: 26.0% against 12.8%. Constellation Energy Corporation has the higher net margin (11.1% vs 2.36%) and the higher return on invested capital (5.66% vs 4.54%). Both pay a dividend; NRG Energy, Inc. yields more (2.34% vs 0.69%). Across the 23 metrics below, NRG Energy, Inc. leads on 12 and Constellation Energy Corporation on 11.

Valuation

Metric CEG NRG Utilities Independent Power Producers median
P/E 23.40 21.38 23.40
P/S 2.77 0.52 2.52
P/B 2.68 4.08 2.50
Price to free cash flow 279.98 46.83 —
EV/EBITDA 12.69 10.03 12.69
EV/Sales 3.36 1.21 2.99
Earnings yield 4.27% 4.68% 2.16%
Free cash flow yield 0.36% 2.14% (3.82%)

Profitability

Metric CEG NRG Utilities Independent Power Producers median
Gross margin 43.91% 18.80% 37.99%
Operating margin 14.70% 6.08% 4.83%
Net margin 11.08% 2.36% 1.18%
Free cash flow margin 0.99% 1.10% 0.50%
Return on equity 15.02% 26.77% 1.70%
Return on assets 4.58% 2.44% 0.93%
Return on invested capital 5.66% 4.54% 2.93%

Growth

Metric CEG NRG Utilities Independent Power Producers median
Revenue growth (TTM) 25.98% 12.80% 12.80%
EPS growth (last fiscal year) (37.76%) (19.64%) (48.17%)
Revenue growth, 5-year CAGR 7.72% 27.56% 15.82%
Net income growth, 5-year CAGR 31.53% 9.34% 1.71%

Health

Metric CEG NRG Utilities Independent Power Producers median
Debt to equity 0.60 4.79 0.74
Current ratio 1.46 0.97 1.21
Net debt to EBITDA 0.63 3.21 3.88

Dividend

Metric CEG NRG Utilities Independent Power Producers median
Dividend yield 0.69% 2.34% —
Payout ratio 0.16 0.50 —

Size

Metric CEG NRG Utilities Independent Power Producers median
Market cap 84.91b 16.93b 4.11b

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